Apple bets big on synchronisation

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Apple Computer is refining a strategy for connecting cell phones and other portable devices to its Macintosh systems in an effort to boost sales. But a rival endeavor from Microsoft, expected to be unveiled early next year, could dim the company's hopes say analysts. Apple is nearing the end of a long testing cycle for iSync, its software for synchronising information between Macs, Bluetooth-enabled cell phones, personal digital assistants or the company's iPod music player. The software, expected to be available early next year for an annual fee, lets consumers and business users input data once and replicate it to many different devices. That's why synchronisation software is shaping up as a key battleground for Apple and Microsoft. As consumers shift spending away from PCs to more portable devices, such as cell phones or digital music players, controlling the key element for synchronising data on these devices with computers is becoming increasingly important, say analysts. Although no projections for the value of the synchronization software market are available, analysts said control of the market could be hugely profitable. "As end-user client devices proliferate, users may have an array of gadgets," said Jupiter Research analyst Michael Gartenberg. "Since most users will have the bulk of their data -- both personal and business -- on their PCs, controlling the synchronization of that data will help determine the overall success of future devices and services." For Apple, synchronisation software could become an important hook that might persuade consumers or businesses to choose Macs over PCs. Apple has seen its share of the overall operating system market slide in recent years as Linux gains popularity. IDC estimates that the Mac OS' market share dropped to 3.1 percent in 2001 from 4.6 percent two years earlier. Windows, in contrast, has more than 90 percent market share. "Certainly by...2005, possibly by the end of 2003, Linux will pass Mac OS as the No. 2 operating environment," said IDC analyst Dan Kusnetzky. Apple hopes its iSync software can slow, or even reverse, its market share erosion. "I don't think people understand that how (the cell phone) works with the computer could be a reason for choosing a platform," said Phil Schiller, the Apple executive in charge of worldwide marketing. Analysts see Apple currently in the lead for such synchronization services. "By controlling sync to devices, Apple is now the gatekeeper of a critical part of the technology needed to enable the future advances in mobile computing as we move into the post PC world," Gartenberg said. "This means that Apple can add support for devices like PocketPCs if it chooses and redefines the relationship with device vendors that want to be a part of the core OS sync experience." The Microsoft issue
The big question mark for Apple is whether Microsoft intends to put its considerable resources behind its own synchronisation software effort. Microsoft is expected to announce, as early as March, during its Mobility Developer Conference, refinements to its synchronisation software, called ActiveSync. But it remains unclear when the company might increase marketing and development efforts behind its synchronisation strategy. A Microsoft representative said the company had no immediate plans to incorporate ActiveSync into its Windows operating system. Such a move would most likely mean that Microsoft would automatically control the vast majority of the sync software market. While Microsoft says it has not decided on its plan, analysts said that adding ActiveSync to Windows is a real possibility, should the market heat up. "Microsoft is considering making ActiveSync a part of the operating system, which would be consistent with the company's past strategy of bundling 'mature' technologies into Windows," Gartenberg said. Directions on Microsoft analyst Robert Helm said he hadn't "heard anything specific" about such a move. Still, bundling ActiveSync into Windows with the next service pack would be a quick way to respond to Apple's plans for iSync. "ActiveSync is definitely Microsoft's strategic synchronization protocol today, but that could change a lot over the next three to four years," Helm said. Clearly, Microsoft is taking this area more seriously. But the company's approach differs in several respects from Apple's. For one thing, the software titan has largely focused on synchronisation of corporate data, which has helped PocketPC steal some momentum from Palm in the personal digital assistant market. However, Microsoft's synchronisation approach uses proprietary protocols, which could slow its acceptance among third-party developers and corporate information services departments, analysts said. Right now, Apple's iSync supports several synchronization protocols, but "SyncXML is the emerging standard," and the one Apple most aggressively supports, said Joe Hyashi, the company's director of applications worldwide product marketing. Microsoft's more proprietary approach could greatly benefit Windows, since consumers would need the latest version of the operating system in order to obtain ActiveSync. That plan would be similar to Microsoft's approach to the media player market, where Windows XP includes a more feature-packed version of its Media Player software. But the company's plan is not set in stone, making it difficult for Apple and other competitors to see where Microsoft is headed. "Looking further out, it's not clear that ActiveSync is the Microsoft synchronization protocol," Directions on Microsoft's Helm said. "The company actually has several synchronization protocols it's supporting today: ActiveSync, SQL Server replication...(and) Outlook." Apple's in more than one basket
Another advantage for Apple could be that Microsoft has largely limited its focus to handhelds and cell phones running the company's PocketPC software. Apple, in contrast, is looking at a broader array of devices. Apple's early synchronisation strategy largely focuses on cell phones, which the company sees quickly displacing personal digital assistants as repositories for contact and calendaring information. "We believe this (cell phone and iSync strategy) replaces the PDA," Apple's Schiller said. "The cell phone becomes your PDA." Apple is hedging its bets on cell phones as the wireless handset industry recovers from its worst year. But analysts see rapid growth on the horizon, particularly as carriers deploy more advanced networks, and manufacturers add more features to devices. IDC expects handset sales to rise from 391 million this year to 606 million by 2006. Another reason to focus on cell phones for synchronisation with PCs is that consumers and businesses typically replace cell phones more quickly than PCs. On top of that, manufacturers are rapidly adding newer, PC-like features to phones. "The next big thing happening on the cell phone is the digital picture stuff," Schiller said. But synchronization is about more than cell phones, particularly as consumers add digital cameras, camcorders and music players to the growing list of devices they connect to computers. Apple clearly is considering these other categories, starting with its iPod digital music player. Already, the company has successfully positioned the Mac as a hub for connecting digital devices. "As personal computers can synchronise more data types beyond calendar and contacts -- as the iPod synchronizes music -- we will see more devices proliferate," Jupiter Research's Gartenberg said. "For example, a future DVR (digital video recorder), might not record anything directly, but sync the TV shows to your TV for home viewing or to your handheld for the road. All of which can be translated in profits for whoever controls the access points of the data sync."
If it moves, we cover it. See ZDNet UK's Mobile Technology News Section for the latest news, reviews and price checks on mobile phones, PDAs, notebook computers and anything else you can take away. Have your say instantly, and see what others have said. Go to the ZDNet news forum. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

1 hour ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

4 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

4 hours ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

5 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

6 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

7 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

7 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

7 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

8 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

8 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

8 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

8 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

9 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

12 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

13 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

13 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

14 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

15 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

16 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule
apexwm

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

1 day ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility